隽思集团(01412) - 2025 - 中期业绩

2025 Interim Results Highlights Q.P.P. Holdings Limited's H1 2025 revenue slightly decreased by 1.2% to HK$532.4 million, with profit attributable to equity holders declining 28.4% to HK$38.6 million Key Financial Highlights for H1 2025 | Metric | H1 2025 (HKD '000) | H1 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 532.4 | 538.6 | -1.2% | | Profit Attributable to Equity Holders | 38.6 | 54.0 | -28.4% | | Basic Earnings Per Share (HK cents) | 7.26 | 10.15 | -28.5% | | Interim Dividend (HK cents per share) | 2.0 | 3.0 | -33.3% | - In H1 2025, OEM sales accounted for approximately 78.7% of total revenue, while website sales accounted for approximately 21.3%[3] Financial Statements Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income In H1 2025, the Group's revenue slightly decreased while gross profit marginally increased, but higher net other losses and administrative expenses led to significant declines in operating profit and profit for the period Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Metric | H1 2025 (HKD '000) | H1 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 532,417 | 538,630 | -1.2% | | Cost of Sales | (337,366) | (346,133) | -2.5% | | Gross Profit | 195,051 | 192,497 | +1.3% | | Net Other (Losses) / Gains | (8,959) | 3,521 | -354.5% | | Operating Profit | 41,828 | 57,675 | -27.4% | | Profit for the Period | 38,364 | 52,675 | -27.2% | | Profit Attributable to Equity Holders | 38,631 | 53,975 | -28.4% | | Basic and Diluted Earnings Per Share (HK cents) | 7.26 | 10.15 | -28.5% | - Other comprehensive income / (loss) shifted from a loss of HK$18,251 thousand in H1 2024 to a gain of HK$19,513 thousand in H1 2025, primarily due to currency translation differences[5] Interim Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets increased to HK$1,250.7 million due to higher property, plant and equipment and trade receivables, but a significant rise in current liabilities, especially borrowings, reduced net current assets Interim Condensed Consolidated Statement of Financial Position (Summary) | Metric | June 30, 2025 (HKD '000) | Dec 31, 2024 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 1,250,651 | 1,170,888 | +6.8% | | Non-current Assets | 694,610 | 629,115 | +10.4% | | Current Assets | 556,041 | 541,773 | +2.6% | | Total Equity | 881,593 | 882,236 | -0.1% | | Total Liabilities | 369,058 | 288,652 | +27.8% | | Current Liabilities | 360,931 | 272,748 | +32.3% | | Borrowings (Current Liabilities) | 150,453 | 50,150 | +200.0% | - Property, plant and equipment increased by 14.2% from HK$427,514 thousand as of December 31, 2024, to HK$488,301 thousand as of June 30, 2025[6] - Cash and bank balances decreased by 21.8% from HK$246,481 thousand as of December 31, 2024, to HK$192,820 thousand as of June 30, 2025[6] Notes 1 General Information Q.P.P. Holdings Limited, an investment holding company primarily engaged in paper product manufacturing and trading, is incorporated in the Cayman Islands and listed on the HKEX, with Good Elite Holdings Limited as its ultimate controlling company - The Company is incorporated in the Cayman Islands and its shares are listed on the Main Board of the Hong Kong Stock Exchange[8] - Good Elite Holdings Limited, 50% owned by Mr. Cheng Wan Wai and Mr. Yeung King Woo respectively, is the direct and ultimate controlling company of the Company[8] 2 Basis of Preparation The interim condensed consolidated financial information is prepared under HKAS 34 and Listing Rules Appendix D2, and should be read with the annual financial statements for the year ended December 31, 2024 - The interim financial information is prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules[10] 3 Accounting Policies Accounting policies are consistent with the 2024 annual financial statements, with new HKAS 21 and HKFRS 1 amendments having no significant impact on the Group's results or financial position - Accounting policies are consistent with the 2024 annual financial statements, and newly adopted standard amendments have no significant impact[11] 4 Estimates Management's judgments, estimates, and assumptions for interim financial information preparation share the same key sources of estimation uncertainty as those applied in the 2024 consolidated financial statements - Management's judgments, estimates, and assumptions in preparing financial information are consistent with those applied in the 2024 consolidated financial statements[12] 5 Revenue and Segment Information The Group's revenue from paper and other products is segmented into website and OEM sales; H1 2025 saw a slight total revenue decrease, with OEM sales declining and website sales growing, while the US and Europe remain key markets, other regions' share increased Revenue by Business Segment | Segment | H1 2025 (HKD '000) | H1 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Website Sales | 113,276 | 99,790 | +13.5% | | OEM Sales | 419,141 | 438,840 | -4.5% | | Total | 532,417 | 538,630 | -1.2% | Revenue by Destination | Region | H1 2025 (HKD '000) | H1 2024 (HKD '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | United States | 317,919 | 340,323 | -6.6% | | Europe | 94,666 | 96,081 | -1.5% | | China | 34,795 | 38,292 | -9.1% | | Others | 85,037 | 63,934 | +33.0% | | Total | 532,417 | 538,630 | -1.2% | - Non-current assets are primarily located in China (HK$512,500 thousand) and Vietnam (HK$175,413 thousand), with a significant increase in non-current assets in Vietnam[16] 6 Net Other (Losses) / Gains In H1 2025, the Group recorded net other losses of HK$8,959 thousand, mainly driven by exchange losses of HK$8,375 thousand, a reversal from prior period's exchange gains Details of Net Other (Losses) / Gains | Item | H1 2025 (HKD '000) | H1 2024 (HKD '000) | | :--- | :--- | :--- | | Exchange (Losses) / Gains | (8,375) | 3,869 | | Loss on Disposal of Property, Plant and Equipment | (584) | (348) | | Total | (8,959) | 3,521 | 7 Other Income Other income for H1 2025 decreased to HK$5,338 thousand from HK$7,243 thousand in the prior period, mainly due to reduced government grants Details of Other Income | Item | H1 2025 (HKD '000) | H1 2024 (HKD '000) | | :--- | :--- | :--- | | Sales of Scraps | 3,991 | 4,054 | | Government Grants | 1,083 | 2,936 | | Others | 242 | 227 | | Total | 5,338 | 7,243 | 8 Profit Before Income Tax Profit before income tax decreased to HK$44,106 thousand, influenced by increased employee benefit expenses, higher depreciation, and a reversal of provision for obsolete inventories Key Deductions / (Credits) for Profit Before Income Tax | Item | H1 2025 (HKD '000) | H1 2024 (HKD '000) | | :--- | :--- | :--- | | (Reversal of) / Provision for Obsolete Inventories | (3,236) | 1,570 | | Employee Benefit Expenses | 190,519 | 180,866 | | Depreciation of Property, Plant and Equipment | 28,982 | 26,908 | | Amortisation of Right-of-use Assets | 3,043 | 2,744 | | Auditor's Remuneration (Audit Services) | 1,199 | 1,090 | | Auditor's Remuneration (Non-audit Services) | 520 | 455 | | Short-term Lease Expenses | 1,150 | 1,492 | | Amortisation of Intangible Assets | 602 | 662 | 9 Net Finance Income Net finance income for H1 2025 was HK$2,278 thousand, largely stable year-on-year, with increased bank interest income offset by higher interest expenses on borrowings and supplier financing Details of Net Finance Income | Item | H1 2025 (HKD '000) | H1 2024 (HKD '000) | | :--- | :--- | :--- | | Bank Interest Income | 4,174 | 3,739 | | Interest Expense on Bank Borrowings | (1,645) | (1,316) | | Interest Expense on Liabilities under Supplier Financing Arrangements | (181) | (23) | | Interest Expense on Lease Liabilities | (70) | (68) | | Net Finance Income | 2,278 | 2,332 | 10 Income Tax Expense Income tax expense for H1 2025 decreased by 21.7% to HK$5,742 thousand due to reduced profit, with varying tax rates applied across Hong Kong, China (preferential for high-tech), and Vietnam (tax holidays/reductions) Details of Income Tax Expense | Item | H1 2025 (HKD '000) | H1 2024 (HKD '000) | | :--- | :--- | :--- | | Current Income Tax | 5,991 | 10,561 | | Deferred Income Tax | (249) | (3,229) | | Total | 5,742 | 7,332 | - Hong Kong profits tax operates under a two-tiered system, with the first HK$2 million of assessable profits taxed at 8.25% and the remainder at 16.5%[19] - Chinese subsidiaries, such as Dongguan Q.P.P. Printing Co., Ltd. and Tengda Printing (Heshan) Co., Ltd., enjoy a preferential tax rate of 15% as high-tech enterprises, while some small-profit enterprises benefit from a 5% preferential income tax rate on the first RMB3 million of assessable income[21] - Vietnamese subsidiary Q P Enterprise (Vietnam) Company Limited enjoys a tax holiday and a 50% tax reduction for the subsequent four years[22] 11 Earnings Per Share Attributable to Equity Holders of the Company Basic earnings per share for H1 2025 decreased by 28.5% to 7.26 HK cents due to reduced profit attributable to equity holders, with the weighted average number of ordinary shares remaining constant Details of Earnings Per Share Calculation | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders (HKD '000) | 38,631 | 53,975 | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 532,000 | 532,000 | | Earnings Per Share (HK cents per share) | 7.26 | 10.15 | - The Group had no potentially dilutive ordinary shares in issue during both reporting periods, thus basic and diluted earnings per share are identical[23] 12 Dividends The Board declared an interim dividend of 2.0 HK cents per ordinary share for H1 2025, totaling HK$10,640 thousand, a decrease from the prior period, in addition to the 11.0 HK cents final dividend for the previous financial year Dividend Declaration and Payment Status | Dividend Type | H1 2025 (HKD '000) | H1 2024 (HKD '000) | | :--- | :--- | :--- | | Interim Dividend Declared After Reporting Period (HK cents per share) | 10,640 (2.0) | 15,960 (3.0) | | Final Dividend Approved and Paid for Previous Financial Year (HK cents per share) | 58,520 (11.0) | 42,560 (8.0) | 13 Property, Plant and Equipment In H1 2025, the Group acquired property, plant and equipment totaling HK$81,913 thousand, mainly for Vietnam plant expansion, while disposing of assets with a net book value of HK$984 thousand - Total cost of property, plant and equipment acquired was approximately HK$81,913 thousand, primarily attributable to new plant and machinery (HK$48,096 thousand) and construction in progress (HK$26,724 thousand), mainly for the development and expansion of the Vietnam plant[27] - The net book value of property, plant and equipment disposed of was approximately HK$984 thousand[28] 14 Trade Receivables As of June 30, 2025, trade receivables increased to HK$200,324 thousand, with credit terms typically 30-90 days, no impairment provision, and primarily denominated in HKD and USD Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HKD '000) | Dec 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Within 30 days | 98,772 | 72,417 | | 31 to 60 days | 61,750 | 62,120 | | 61 to 90 days | 37,490 | 15,450 | | Over 90 days | 2,312 | 1,595 | | Total | 200,324 | 151,582 | Currency Denomination of Trade Receivables | Currency | June 30, 2025 (HKD '000) | Dec 31, 2024 (HKD '000) | | :--- | :--- | :--- | | USD | 89,172 | 96,761 | | HKD | 107,018 | 50,912 | | RMB | 3,735 | 3,417 | | Others | 399 | 492 | | Total | 200,324 | 151,582 | - The Group does not hold any collateral and has made no impairment provision for trade receivables[30][31] 15 Borrowings As of June 30, 2025, total borrowings significantly increased by 200% to HK$150,453 thousand, primarily denominated in HKD and RMB, and secured by right-of-use assets and property, plant and equipment Total Borrowings and Currency Denomination | Item | June 30, 2025 (HKD '000) | Dec 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Bank Borrowings (Current Liabilities) | 150,453 | 50,150 | | Of which: HKD | 44,253 | 12,861 | | Of which: RMB | 106,200 | 37,289 | Assets Pledged for Borrowings | Pledged Assets | June 30, 2025 (HKD '000) | Dec 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Right-of-use Assets | 77,548 | 78,443 | | Property, Plant and Equipment | 61,701 | 63,337 | | Total | 139,249 | 141,780 | - The effective annual interest rates for borrowings include HIBOR plus 1.0% to 1.2%, LPR minus 0.45% to 0.6%, and a fixed rate of 2.5%[36] 16 Trade Payables As of June 30, 2025, trade payables slightly increased to HK$76,607 thousand, primarily denominated in RMB, with most amounts due within 30 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HKD '000) | Dec 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Within 30 days | 47,523 | 50,451 | | 31 to 60 days | 15,209 | 16,217 | | 61 to 90 days | 8,191 | 5,502 | | Over 90 days | 5,684 | 3,057 | | Total | 76,607 | 75,227 | Currency Denomination of Trade Payables | Currency | June 30, 2025 (HKD '000) | Dec 31, 2024 (HKD '000) | | :--- | :--- | :--- | | RMB | 54,102 | 53,770 | | HKD | 9,252 | 8,088 | | USD | 6,079 | 6,049 | | VND | 7,174 | 7,320 | | Total | 76,607 | 75,227 | 17 Share Capital As of June 30, 2025, the Company's authorized share capital was HK$20,000 thousand and issued and fully paid share capital was HK$5,320 thousand, both unchanged from December 31, 2024 - Authorized share capital was HK$20,000 thousand, and issued and fully paid share capital was HK$5,320 thousand, both remaining unchanged[41] Management Discussion and Analysis Business Review The Group responded to a complex global economic environment by strategically allocating orders, optimizing trading card game production, developing innovative products, and expanding website and OBM sales channels through marketing and trade shows - Established in 1985, the Group is a paper product manufacturing and printing service provider, with key product categories including board games, greeting cards, educational products, trading card games, and packaging boxes[42] - To address tariff policies and geopolitical tensions, the Group strategically allocates orders between its China and Vietnam production bases to enhance supply chain flexibility[44] - The Group continues to optimize its trading card game production capacity through workshop integration and technological upgrades, achieving significant growth and expanding its customer base[44] - Website sales revenue grew by approximately 13.5% to HK$113.3 million, with the number of active registered user accounts increasing to approximately 82,000[46] Company Profile Established in 1985, Q.P.P. Group, headquartered in Hong Kong with production in China and Vietnam, provides paper product manufacturing and printing services, including board games and trading cards, sold via OEM and online channels - The Group's main product categories include board games, greeting cards, educational products, trading card games, and packaging boxes[42] - Sales are made to OEM clients (approximately 78.7% of total revenue) and individual and corporate customers through online sales channels (approximately 21.3% of total revenue)[3][42] Business Overview Amid global economic challenges, the Group responded with flexible supply chain management and investment in high-growth trading card games, while expanding website sales and OBM businesses through marketing and product innovation - The global economic environment is complex and volatile, with tariff policies and geopolitical tensions posing challenges to the manufacturing industry[43] - The Group strategically allocates orders between its China and Vietnam production bases to mitigate tariff impacts and enhance supply chain flexibility[44] - Production capacity for the trading card game business was optimized, achieving significant growth through integrated production workshops and technological upgrades[44] - Website sales business enhanced online platform visibility and expanded global markets through participation in trade exhibitions and digital marketing strategies[45] Future Outlook The Group anticipates a cautious global economic recovery, focusing on OEM diversification and trading card manufacturing expansion through innovation, trade shows, and e-commerce optimization, with a new Vietnam factory expected to boost capacity in Q3 2025 - A cautious global economic recovery is anticipated, with stable demand for high-end paper consumer products[47] - Efforts will be intensified to diversify OEM business and focus on expanding the trading card manufacturing business, with plans to participate in major trade exhibitions to foster cooperation[47] - The website sales business will launch new print-on-demand solutions for trading card products to cater to niche markets and individual consumer needs[48] - The new factory building at the Vietnam production base is expected to commence production in Q3 2025, significantly enhancing production capacity and flexibility[48] Financial Review In H1 2025, the Group's revenue slightly decreased by 1.2% due to lower OEM sales, despite website sales growth; gross profit margin improved, but exchange losses and increased Vietnam plant employee costs led to a 28.4% decline in profit attributable to equity holders - Total revenue was approximately HK$532.4 million, a 1.2% year-on-year decrease, primarily due to reduced OEM sales revenue[49] - Gross profit margin increased from approximately 35.7% in H1 2024 to approximately 36.6% in H1 2025, mainly due to the increased contribution from the higher-margin website sales business[54] - Profit attributable to equity holders was approximately HK$38.6 million, a 28.4% year-on-year decrease, with net profit margin narrowing from 9.8% to 7.2%[61] Revenue H1 2025 total revenue decreased 1.2% to HK$532.4 million, with OEM sales down 4.5% to HK$419.1 million due to US tariffs, while website sales grew 13.5% to HK$113.3 million, and other overseas markets expanded Total Revenue by Business Segment | Segment | 2025 (HKD '000) | Share (%) | 2024 (HKD '000) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | OEM Sales | 419,141 | 78.7 | 438,840 | 81.5 | | Website Sales | 113,276 | 21.3 | 99,790 | 18.5 | | Total | 532,417 | 100.0 | 538,630 | 100.0 | Regional Revenue by Destination | Region | 2025 (HKD '000) | Share (%) | 2024 (HKD '000) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | United States | 317,919 | 59.7 | 340,323 | 63.2 | | Europe | 94,666 | 17.8 | 96,081 | 17.8 | | China | 34,795 | 6.5 | 38,292 | 7.1 | | Others | 85,037 | 16.0 | 63,934 | 11.9 | | Total | 532,417 | 100.0 | 538,630 | 100.0 | - The sales proportion from the US and European markets decreased, primarily due to business expansion in other overseas markets such as Vietnam, Japan, and Thailand during the reporting period[52] Cost of Sales Cost of sales decreased by 2.5% to HK$337.4 million, primarily due to reduced production volume driven by lower OEM product demand - Cost of sales decreased by approximately 2.5% from HK$346.1 million in H1 2024 to HK$337.4 million in H1 2025[53] - The decrease in cost of sales was primarily due to reduced production volume resulting from lower demand for OEM products[53] Gross Profit Gross profit increased by 1.3% to HK$195.1 million, with the gross profit margin improving from 35.7% to 36.6%, mainly due to increased contribution from the higher-margin website sales business - Gross profit was approximately HK$195.1 million, an increase of approximately 1.3% compared to H1 2024[54] - Gross profit margin increased from approximately 35.7% in H1 2024 to approximately 36.6% in H1 2025[54] - The increase in gross profit margin was primarily due to the increased contribution from the website sales business, which has a higher gross profit margin compared to OEM business[54] Net Other (Losses) / Gains Net other losses were recorded, primarily due to exchange losses from the appreciation of RMB against HKD - Net other losses were primarily due to the adverse impact of exchange losses resulting from the appreciation of RMB against HKD[55] Other Income Other income decreased, primarily due to reduced government grants received from China - The decrease in other income was primarily due to reduced government grants received from China during the reporting period[56] Selling and Distribution Expenses Selling and distribution expenses decreased by 5.2% to HK$47.7 million, mainly due to reduced employee costs for sales activities and lower sales commissions - Selling and distribution expenses decreased by approximately 5.2% from HK$50.3 million in H1 2024 to HK$47.7 million in H1 2025[57] - The decrease was primarily due to reduced employee costs related to sales activities and lower sales commissions payable during the reporting period[57] Administrative Expenses Administrative expenses increased by 7.0% to HK$101.9 million, primarily due to increased employee costs at the Vietnam plant - Administrative expenses increased by approximately 7.0% from HK$95.2 million in H1 2024 to HK$101.9 million in H1 2025[58] - The increase in administrative expenses was primarily due to increased employee costs at the Group's Vietnam plant during the reporting period[58] Net Finance Income Net finance income remained stable at approximately HK$2.3 million across both reporting periods - Net finance income remained stable at approximately HK$2.3 million in both H1 2025 and H1 2024[59] Income Tax Expense Income tax expense decreased by 21.7% to HK$5.7 million, primarily due to reduced profit recognized - Income tax expense decreased by approximately 21.7% from HK$7.3 million in H1 2024 to HK$5.7 million in H1 2025[60] - The decrease in income tax expense was primarily due to reduced profit recognized during the reporting period[60] Profit Attributable to Equity Holders of the Company Profit attributable to equity holders decreased by 28.4% to HK$38.6 million, with net profit margin narrowing to 7.2%, primarily due to increased Vietnam plant employee costs and adverse exchange losses - Profit attributable to equity holders decreased by approximately 28.4% from HK$54.0 million in H1 2024 to HK$38.6 million in H1 2025[61] - Net profit margin decreased from approximately 9.8% in H1 2024 to approximately 7.2% in H1 2025[61] - The decrease in net profit was primarily due to increased employee costs at the Vietnam plant and the adverse impact of exchange losses[61] Other Information Liquidity and Financial Resources The Group maintained healthy liquidity, but net current assets and cash balances decreased, while total borrowings, supplier financing liabilities, and lease liabilities significantly increased - Net current assets decreased to approximately HK$195.1 million (December 31, 2024: HK$269.0 million)[62] - Cash and bank balances decreased by approximately HK$53.7 million to approximately HK$192.8 million (December 31, 2024: HK$246.5 million)[62] - Total borrowings, liabilities under supplier financing arrangements, and lease liabilities significantly increased to approximately HK$166.2 million (December 31, 2024: HK$70.7 million)[63] Contingent Liabilities and Capital Commitments As of June 30, 2025, the Group had no significant contingent liabilities, and capital commitments for property, plant and equipment acquisitions decreased to HK$34.0 million - As of June 30, 2025, the Group had no significant contingent liabilities[64] - Capital commitments amounted to approximately HK$34.0 million (December 31, 2024: HK$59.9 million), primarily for the acquisition of property, plant and equipment[65] Exchange Rate Risk and Hedging The Group faces foreign currency risk from multi-currency denominated revenues and expenses, managing it by monitoring exchange rates and using financial instruments for hedging when needed, without a formal hedging accounting policy - The Group faces foreign currency risk, primarily due to revenue, production costs, and operating expenses being denominated in different currencies[66] - The Group manages risk by closely monitoring foreign currency exchange rate movements and using financial instruments for hedging when necessary, but does not adopt a formal hedging accounting policy[66] Material Acquisitions or Disposals The Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period - There were no material acquisitions or disposals in both H1 2025 and H1 2024[68] Future Investment Plans Except as disclosed, the Group has no other plans for significant investments or capital assets and held no significant investments during the reporting period - Except as disclosed in this announcement, the Group has no other plans for significant investments or capital assets[69] - No significant investments were held in H1 2025[70] Pledge of Assets As of June 30, 2025, approximately HK$77.5 million of right-of-use assets and HK$61.7 million of property, plant and equipment were pledged for bank borrowings and supplier financing liabilities - Approximately HK$77.5 million of right-of-use assets and approximately HK$61.7 million of property, plant and equipment were pledged as collateral for bank borrowings and liabilities under supplier financing arrangements[71] Employees and Remuneration Policy As of June 30, 2025, the Group had 3,232 employees, with total employee costs of HK$190.5 million, an increase from the prior period, and remuneration policy is reviewed based on market and performance - As of June 30, 2025, the Group had 3,232 employees (December 31, 2024: 2,976 employees)[72] - Total employee costs for H1 2025 were approximately HK$190.5 million (H1 2024: HK$180.9 million)[72] - The remuneration policy considers market conditions and individual performance, including basic salary, directors' emoluments, retirement scheme contributions, and discretionary bonuses[72] Corporate Governance The Group complies with the Corporate Governance Code, with a deviation for the combined Chairman and CEO roles, which the Board believes provides strong leadership; the share option scheme, adopted for incentives, has not granted any options - The Group has adopted and complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, with a deviation from code provision C.2.1 (roles of Chairman and Chief Executive should be separate)[73] - Mr. Cheng Wan Wai serves as both Chairman and Chief Executive Officer, an arrangement the Board believes provides strong and consistent leadership[74] - The share option scheme was adopted on December 20, 2019, to provide incentives or rewards, but no share options have been granted from its adoption date up to June 30, 2025[76] Standard Code for Securities Transactions The Company adopted a directors' securities transaction code no less exacting than the Listing Rules' Standard Code, with all directors confirming compliance during the reporting period - The Company has adopted a code of conduct for directors' securities transactions no less exacting than the Standard Code set out in Appendix C3 of the Listing Rules[75] - All Directors confirmed compliance with the Company's adopted Standard Code throughout H1 2025[75] Share Option Scheme The share option scheme, adopted on December 20, 2019, aims to incentivize eligible persons; as of June 30, 2025, no options have been granted, with 53,200,000 options available for grant - The share option scheme was adopted on December 20, 2019, to provide incentives or rewards to selected eligible persons[76] - No share options have been granted under the scheme to any directors, eligible employees, or other third parties from the adoption date up to June 30, 2025[76] - The number of share options available for grant is 53,200,000 shares, representing 10% of the issued shares as of the date of this interim report[76] Changes in Directors' Information Changes in directors' information include Professor Cheng Man Chung's re-appointment to the Carbon Neutrality Committee and appointment as Vice Chairman of Guangdong Nuclear Safety Advisory Committee, Mr. Chan Hiu Fung's resignation from TransUnion and new roles at HKGCC and HKFA, and Mr. Wu Sung's re-election as Chairman of the Hong Kong Owners Association - Professor Cheng Man Chung was re-appointed to the Carbon Neutrality and Sustainable Development Committee and appointed Vice Chairman of the Guangdong Nuclear Power Station Nuclear Safety Advisory Committee[77][78] - Mr. Chan Hiu Fung resigned as an independent non-executive director of TransUnion Limited, was elected Vice Chairman of the China Committee of the Hong Kong General Chamber of Commerce, and re-elected as a director of The Hong Kong Football Association Limited[79][80] - Mr. Wu Sung was re-elected Chairman of the Hong Kong Owners Association Executive Committee[80] Purchase, Sale or Redemption of the Company's Listed Securities In H1 2025, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - In H1 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[81] Interim Dividend and Register of Members The Board declared an interim dividend of 2.0 HK cents per ordinary share for H1 2025, payable around October 9, 2025, with share transfer registration suspended from September 17-19, 2025, to determine eligibility - The Board resolved to declare an interim dividend of 2.0 HK cents per ordinary share for H1 2025, totaling approximately HK$10.6 million[82] - The interim dividend will be paid on or about Thursday, October 9, 2025[82] - The share transfer registration will be suspended from Wednesday, September 17, 2025, to Friday, September 19, 2025[83] Events After Reporting Period No significant events affecting the Group occurred after H1 2025 and up to the date of this announcement - No significant events affecting the Group occurred after H1 2025 and up to the date of this announcement[84] Audit Committee and Auditor's Review The Audit Committee reviewed the Group's accounting principles and interim condensed consolidated financial statements, which were also reviewed by independent auditor PricewaterhouseCoopers under HKSRE 2410 - The Audit Committee, comprising three independent non-executive directors, has reviewed the accounting principles adopted by the Group and the interim condensed consolidated financial statements[85] - Independent auditor PricewaterhouseCoopers has reviewed the unaudited interim condensed consolidated financial information in accordance with Hong Kong Standard on Review Engagements 2410[86] Publication of Report The H1 2025 interim results announcement will be published on the HKEX and Company websites, with the full interim report dispatched to shareholders and published online in due course - The H1 2025 interim results announcement will be published on the HKEX website (www.hkexnews.hk) and the **Company's website (www.qpp.com)**[87](index=87&type=chunk) - The interim report, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course[87] Board Composition As of this announcement date, the Board comprises six executive directors and three independent non-executive directors - The Board comprises six executive directors and three independent non-executive directors[89]